Sterling sell-off beginning 9.30 BST | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

♦ A New Beginning ♦ 0 replies

some pips at the beginning of 2008 1 reply

my trading plan for week beginning 17/12/06 2 replies

My Journal Of Beginning Again. 48 replies

Is Euro Down Finished or the beginning to 1.15??? 0 replies

Sterling sell-off beginning 9.30 BST

  • #1
  • First Post: Jun 17, 2008 6:54am Jun 17, 2008 6:54am
Hi all,

I take it that it wasn't the mildly positive CPI news release that triggered the rather large sterling sell-off that immediately followed...

Any ideas as to why the market might 'react' like that? Only thing I can think of is big banks using positive news & hence liquitity long to execute some short orders, and everyone else jumping in...

Or else it's something I missed.
  • #2
  • Edited 7:00am Jun 17, 2008 6:59am | Edited 7:00am
Quoting Castlemain
Hi all,

I take it that it wasn't the mildly positive CPI news release that triggered the rather large sterling sell-off that immediately followed...

Any ideas as to why the market might 'react' like that? Only thing I can think of is big banks using positive news & hence liquitity long to execute some short orders, and everyone else jumping in...

Or else it's something I missed.
its possible, if i traded futures next retrace and im in...
  • #3
  • Jun 17, 2008 7:01am Jun 17, 2008 7:01am
BOE King to his letter to the government said in a nutshell that he doesnt know what to do with the slow growth and rising inflation
  • #4
  • Jun 17, 2008 7:05am Jun 17, 2008 7:05am
Quoting Castlemain
Hi all,

I take it that it wasn't the mildly positive CPI news release that triggered the rather large sterling sell-off that immediately followed...

Any ideas as to why the market might 'react' like that? Only thing I can think of is big banks using positive news & hence liquitity long to execute some short orders, and everyone else jumping in...

Or else it's something I missed.
lets get one thing clear, high inflation in a potential low growth credit crunch environment is not good for sterling. In normal conditions high inflation would reflect increased domestic demand, but the overall conditions favour stagflation along with housing problems brewing here also all adds upto bad for sterling

MPC cant raise rates otherwise they risk serious recession and fall out, therefore they can only hold or cut to save consumer led economy, difficult balancing act, no1 has any confidence in them to do the right thing also!!!
Trading is 80% Emotional, 20% Technical
  • #5
  • Last Post: Jun 17, 2008 7:06am Jun 17, 2008 7:06am
there was some articles on thomsonfxhub.com that were thinking probably because of interest rate backpedaling in the US, along with no rate hikes coming in Australia and now the UK, so everyone is getting out. My guess is they're taking profits and everyone is jumping in/out
0 traders viewing now